I will be a German tax resident (can’t avoid the 183 days rule) and trying to decide whether to go as a freelancer or register a UG (an equivalent UK limited).
I am inclined to go as a freelancer but concerned with my 2013/14 tax situation. I understand that as a freelancer I will have to declare all of my income in Germany in the year I earn it. This will be already high enough to take me into the 42% tax bracket. This is clear.
What happens to the UK income in the same financial year? As I also own a UK limited, I’ve just taken £30k in dividends (which is tax free as per UK tax rules) for the work performed in the last financial year. Will the German taxman want a slice of that?
Also, what happens if I liquidate my UK company and pay the 10% entrepreneur tax on the money which are currently there? Will I need to pay any additional tax in Germany on that?
I am getting a professional advice from international tax advisors in Germany but, if someone has got personal experience to share, it would be really appreciated.
I am inclined to go as a freelancer but concerned with my 2013/14 tax situation. I understand that as a freelancer I will have to declare all of my income in Germany in the year I earn it. This will be already high enough to take me into the 42% tax bracket. This is clear.
What happens to the UK income in the same financial year? As I also own a UK limited, I’ve just taken £30k in dividends (which is tax free as per UK tax rules) for the work performed in the last financial year. Will the German taxman want a slice of that?
Also, what happens if I liquidate my UK company and pay the 10% entrepreneur tax on the money which are currently there? Will I need to pay any additional tax in Germany on that?
I am getting a professional advice from international tax advisors in Germany but, if someone has got personal experience to share, it would be really appreciated.
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